Georgia guide
Georgia condo reserve study requirements
Georgia takes a middle path on reserves. O.C.G.A.
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§44-3-107 requires condo annual budgets to include reserve line items for deferred maintenance and depreciation, but does not require a formal reserve study, a specific funding level, or any update cadence. The POAA imposes no reserve obligation on HOAs at all. The result: reserve discipline is largely voluntary, and the gap between best-practice and statutory floor is one of the leading predictors of future special assessments.
What the Condominium Act actually requires
§44-3-107 requires the operating budget to include reserves for deferred maintenance and depreciation. The Act does not specify how the amount is calculated, does not require a professional study, and does not set a funding-percentage target. Compliance can mean a meaningful reserve allocation aligned with a voluntary professional study, or a token line item that has not been adjusted in years.
Reading reserve adequacy in the absence of a study
Without a study, reserve adequacy must be inferred. For older buildings, look at: the building age and major component replacement schedule, the historical pattern of special assessments, the budget's reserve line as a percentage of total budget (industry guidance suggests 15–25 percent for most buildings), and recent board minutes for capital-planning discussions. The voluntary commission of a professional study is itself a positive governance signal.
What absence of reserves signals for HOAs
The POAA imposes no reserve requirement. Many Georgia HOAs operate with minimal or no reserve cushion. For a buyer, the implication is straightforward: capital work in HOA-governed communities tends to arrive as special assessments. Read the declaration for any reserve-related requirements (some declarations impose obligations that the POAA does not), and read the last 24 months of minutes for any reserve-related discussion.
Reserve studies as a leading governance signal
Even though not required, a current professional reserve study is a strong governance positive. It signals board willingness to plan capital obligations explicitly. The absence of a study for an older building or for any community with material amenity programs is a meaningful diligence finding — particularly when combined with sparse capital-planning discussion in minutes.
Georgia legal references
- O.C.G.A. §44-3-107 — Condo budget reserve requirements
- O.C.G.A. §44-3-220 et seq. — POAA (no reserve obligation imposed)
Informational only. Not legal advice. Always confirm against current statute and counsel.
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Find a Georgia specialist →Reviewer's checklist
- Confirm whether the operating budget includes reserve line items (§44-3-107 required for condos)
- Request any voluntary reserve study and its funding plan
- Identify the current reserve balance and recent contribution history
- Compare reserve adequacy to building age and major component schedule
- Read the last 24 months of minutes for capital-planning discussion
- Identify recent special assessments and their stated drivers
- For HOAs: confirm whether the declaration imposes reserve obligations beyond the POAA
- Verify whether the board plans to commission a study in the next 24 months
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Condo document review
A condo document review is the structured analysis of every disclosure document your seller or association has provided — declaration, bylaws, rules, reserve study, budgets, financials, meeting minutes, insurance summary, estoppel or resale certificate, and any pending special assessment notices.
Governance risk
An association's governance health is a leading indicator of every other risk.
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- Reserve fund engineer
- Property manager
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Reserve studies, audit findings, attorney memos, milestone inspections — CondoSignal produces a free, structured review with page citations your board can act on. No cost to the association.